Tether (USDT) will undergo a full audit from a top accounting firm, according to the stablecoin issuer’s chief technology officer.
Tether CTO Paolo Ardoino tells Euromoney that a top-12 accounting firm will audit the company because the leading four auditing companies are wary of stepping into the relatively unregulated crypto space.
I think it’s one of the top 12, so not that bad. The big four are a bit more cautious about providing a full audit when the rules are not clear.”
Tether has recently denied recent rumors that 85% of its commercial paper holdings are backed by Chinese or Asian commercial papers and are being traded at 30% off. Commercial papers are a form of unsecured short-term debt issued by companies and financial institutions to meet liabilities and are usually sold at a discount.
Tether is the largest stablecoin by market cap and aims to stay pegged to the US dollar. It’s trading slightly below that peg at time of writing, currently priced at $0.998947. It dropped as low as $0.996 during the initial crypto market crash in May.
Ardoino notes, however, that Tether never denied requests for redemptions at $1.
“We showed that in the worst-case scenario — when there was Terra crumbling, the entire crypto market crumbling, and the stock market was going down — we got a ton of requests of withdrawals and we honored them within minutes.”
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